Former Signature Bank Leadership Launches New Blockchain Bank N3XT A new financial institution named N3XT has been launched by a group that includes Signature Bank founder Scott Shay. The bank’s core mission is to leverage blockchain technology to offer clients instant, around-the-clock payment services. N3XT is positioning itself as a next-generation bank built on a private, permissioned blockchain. This approach is designed to combine the speed and efficiency benefits of distributed ledger technology with the regulatory compliance and security standards expected of a traditional bank. The goal is to eliminate the delays associated with conventional banking hours and legacy settlement systems. The founding team brings significant banking experience to the venture. Alongside Scott Shay, who co-founded the notable crypto-friendly Signature Bank, the leadership includes former Signature executives such as John Bonello, who will serve as Chief Technology Officer, and others with deep backgrounds in finance and technology. This experience is seen as crucial for navigating the complex regulatory landscape while innovating. The bank plans to offer real-time payment capabilities for both fiat currency and digital assets. Transactions on its private blockchain are intended to settle instantly and be available 24 hours a day, seven days a week, a stark contrast to the batch processing and weekday limitations of many current bank systems. This model aims to serve businesses and individuals who require constant access to their funds and faster settlement times. A private, permissioned blockchain differs from public networks like Bitcoin or Ethereum. Access to participate in validating transactions is controlled, typically restricted to known and vetted entities like the bank itself and its approved partners or clients. Proponents argue this setup offers greater privacy, security, and efficiency for enterprise and financial use cases, as it does not rely on the energy-intensive proof-of-work consensus mechanism. The launch of N3XT comes after the high-profile closure of Signature Bank by regulators in March 2023 during a period of sector-wide instability. The new venture is viewed by some as a phoenix rising from the ashes, applying lessons learned to build a more modern and resilient banking framework focused on the future of digital finance. The bank will initially focus on serving corporate and institutional clients, including those in the digital asset and technology sectors. The emphasis will be on providing seamless treasury management and payment solutions that bridge traditional finance and blockchain-based systems. Industry observers note that N3XT enters a competitive landscape where the demand for faster payments is growing globally. Other financial institutions and fintech companies are also exploring blockchain and other technologies to improve settlement times. N3XT’s differentiator may lie in its team’s specific experience with both regulated banking and the crypto ecosystem. Regulatory compliance remains a paramount focus for the new bank. The founders have stated that operating within the full scope of banking regulations is a foundational principle. The private blockchain model is partly chosen to facilitate this compliance, allowing for know-your-customer and anti-money laundering protocols to be integrated directly into the platform. If successful, N3XT could represent a model for how traditional banking infrastructure evolves. It seeks to demonstrate that the core benefits of blockchain technology, namely speed, transparency, and reduced intermediary friction, can be harnessed within a fully regulated and insured banking environment. The broader trend of integrating blockchain into traditional finance continues to gain momentum. Institutions are increasingly exploring ways to use distributed ledgers for clearing and settlement, asset tokenization, and cross-border payments. N3XT’s launch is a concrete example of seasoned bankers actively building this future, aiming to provide instant, continuous financial services in an increasingly digital economy.
